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Infertility & IVF Tax Deductions Infertility treatments and IVF costs are often not covered by insurance. As un-reimbursed medical expenses they become eligible for tax deductions. Qualifying medical expense deductions save you money on the infertility treatments you pay for yourself, and help you preserve assets for continued attempts if needed.
Infertility and IVF tax deductions may yield better savings for your growing family if you use your Flexible Spending Account (FSA) at work instead of, or in combination with Schedule A deductions at the end of the year. But you have to plan ahead and know the pros and cons of the two approaches. The primary advantages and disadvantages for the two tax vehicles are summarized by the table below. Know the rules, and estimate your annual costs to give yourself the biggest possible tax break.
Qualified IVF Deductions and Contribution LimitsForecasting annual infertility costs is a crucial but often difficult task for many couples, and often dictates the best tax savings vehicle to use. An estimate of eligible deductions is important because of FSA rules, and the way Schedule A works. The most important consideration is the use it or lose it rule. Any contribution you make must be spent by the end of the year. Only contribute funds you are certain will be spent.
Also consider the employer controlled contribution limits for an FSA. Your employer must immediately reimburse any qualifying expense as soon as the costs are incurred and approved for payment - regardless of how much you have contributed to your account. This means two things:
On the other hand Schedule A limits deduction of eligible expenses to the amount above 7.5% of your adjusted gross income (AGI). For example, a couple with an AGI of $100,000 gets no tax savings on the first $7,500 of un-reimbursed infertility expenses. An FSA will provide first dollar tax savings.
Estimating Deductible Infertility TreatmentsEstimating deductible infertility treatment expenses can be very difficult. Some couples are lucky enough to have IVF coverage, while other insurance plans cover a portion of expenses for some procedures, and most cover nothing at all. Plans with prescription drug coverage may impose differing co-pays based upon plan formulary.
The biggest challenge lies in guessing the number of attempts that will be needed to get pregnant. If considering use of a flexible spending account, only contribute the amount needed on a single IVF cycle or other approach - plus a little more. If you get pregnant on your first attempt so spend the entire amount on the procedure, and have something set aside to cover pregnancy expenses. Find qualifying expense estimates for many infertility and IVF procedures. Diagnostic Procedures
Male Fertility Procedures
Assisted Reproductive Procedures
Prenatal vitamins - prescription Storage costs
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